Veracyte (NASDAQ:VCYT) Posts Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Veracyte (NASDAQ:VCYT) announced its earnings results on Thursday. The biotechnology company reported $0.54 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.10, FiscalAI reports. The firm had revenue of $150.32 million during the quarter, compared to the consensus estimate of $144.59 million. Veracyte had a return on equity of 9.07% and a net margin of 16.25%.The firm’s revenue for the quarter was up 15.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.44 EPS.

Here are the key takeaways from Veracyte’s conference call:

• Strong Q2 results: Revenue rose 15% year over year to $150.3 million, testing volume increased 13% to approximately 51,000 tests, and adjusted EBITDA grew 23% to $44 million, or 29.2% of revenue. The company generated $45.8 million in operating cash flow and ended the quarter with $485.2 million in cash and short-term investments.
• Veracyte raised its 2026 revenue outlook to $590 million-$596 million, reflecting 14%-15% growth, while maintaining adjusted EBITDA guidance above 26%. The outlook assumes approximately 20% Decipher revenue growth and excludes contributions from the recently launched Prosigna LDT and TrueMRD products.
• The company launched Prosigna LDT for ER-positive, HER2-negative breast cancer and TrueMRD for recurrence monitoring in muscle-invasive bladder cancer. Early physician and patient response has been encouraging, more than 100 institutions are engaged on Prosigna, and Veracyte is expanding its sales force and investing in electronic health-record integration.
• Decipher Prostate volume expectations were reduced by approximately 1,000 tests for 2026, primarily because low-risk testing is growing only at a single-digit rate after an NCCN guideline change removed genomic testing from active-surveillance recommendations. Management expects additional clinical studies, with initial readouts beginning as early as 2027, to support potential future adoption.
• Afirma continued to gain traction, with volume up 10% and revenue up 18% year over year to approximately 18,600 tests. Higher reimbursement, pricing improvements, market-share gains, and the V2 transcriptome workflow’s lower no-result rate supported growth and improved testing gross margins.

Veracyte Price Performance

Shares of Veracyte stock traded up $4.07 during trading on Thursday, hitting $59.78. 1,541,179 shares of the company’s stock traded hands, compared to its average volume of 1,033,706. The company has a market cap of $4.77 billion, a PE ratio of 54.84 and a beta of 1.93. The firm’s fifty day moving average price is $53.40 and its 200 day moving average price is $42.17. Veracyte has a twelve month low of $22.92 and a twelve month high of $60.91.

Insider Transactions at Veracyte

In other Veracyte news, Director Robert S. Epstein sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $44.01, for a total transaction of $440,100.00. Following the completion of the transaction, the director owned 52,446 shares in the company, valued at $2,308,148.46. This trade represents a 16.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Marc Stapley sold 138,051 shares of Veracyte stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $50.12, for a total value of $6,919,116.12. Following the sale, the chief executive officer directly owned 440,494 shares in the company, valued at $22,077,559.28. The trade was a 23.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 206,696 shares of company stock valued at $10,079,058. Corporate insiders own 1.60% of the company’s stock.

Institutional Trading of Veracyte

A number of large investors have recently bought and sold shares of the stock. Fuller & Thaler Asset Management Inc. bought a new position in shares of Veracyte during the fourth quarter valued at $58,158,000. Squarepoint Ops LLC grew its holdings in shares of Veracyte by 770.6% in the 2nd quarter. Squarepoint Ops LLC now owns 897,387 shares of the biotechnology company’s stock worth $24,256,000 after purchasing an additional 794,307 shares during the last quarter. Soleus Capital Management L.P. acquired a new stake in shares of Veracyte during the second quarter worth approximately $19,338,000. Iron Triangle Partners LP boosted its stake in Veracyte by 102.1% in the fourth quarter. Iron Triangle Partners LP now owns 980,391 shares of the biotechnology company’s stock worth $41,274,000 after purchasing an additional 495,391 shares in the last quarter. Finally, Bank of America Corp DE lifted its position in Veracyte by 31.1% during the 2nd quarter. Bank of America Corp DE now owns 1,519,710 shares of the biotechnology company’s stock worth $41,078,000 after buying an additional 360,947 shares in the last quarter.

Wall Street Analysts Forecast Growth

VCYT has been the subject of several research reports. Guggenheim increased their price objective on Veracyte from $45.00 to $65.00 and gave the company a “buy” rating in a research report on Monday, June 29th. Morgan Stanley upped their target price on shares of Veracyte from $37.00 to $47.00 and gave the company an “underweight” rating in a research note on Thursday, July 9th. Canaccord Genuity Group raised their price target on shares of Veracyte from $42.00 to $60.00 and gave the stock a “hold” rating in a research report on Tuesday, July 14th. Wolfe Research started coverage on shares of Veracyte in a research note on Tuesday, June 2nd. They issued an “outperform” rating and a $55.00 target price for the company. Finally, Wall Street Zen raised Veracyte from a “buy” rating to a “strong-buy” rating in a research report on Sunday, July 12th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Veracyte currently has an average rating of “Moderate Buy” and an average target price of $55.88.

Veracyte Company Profile

Veracyte, Inc is a genomic diagnostics company focused on improving diagnostic accuracy and patient care through advanced molecular testing. Founded in 2008 and headquartered in South San Francisco, California, the company develops and commercializes minimally invasive genomic tests that aid in the diagnosis of thyroid, lung and other diseases. Veracyte’s proprietary platform analyzes gene expression patterns in clinical samples to help physicians make more informed treatment decisions, reducing unnecessary surgeries and improving patient outcomes.

The company’s flagship product, the Afirma Genomic Sequencing Classifier, is designed to assess thyroid nodules with indeterminate cytology, helping clinicians distinguish benign from suspicious nodules.